PROBLEM#$2$

$($You MUST show all formules, calculations, and work, and please highlight all answers$)$

A company is using Kanban containers. There are two adjacent work centers, a downstream $($using$)$ and an upstream

$($producing$)$ one. The using work center has a production rate of $200$ parts per day and each container holds $20$

parts. It takes $\mathrm{.}5$ days for a container to make the entire cycle from the time it leaves the upstream center until it is

retumed, filled with production, and leaves again. The manager wants a safety factor $()$ of $20\%.$ The company is

interested in reducing the number of containers.

What is the number of containers currently in

use?

If the number of parts a container holds is

increased to $24$ parts, how many containers

are needed?

If the company wants the number of

containers $($holding $20$ parts each$)$ to be $5,$

what must the safety factor become?